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Performance Measurement

Strategy Driven

Supplementing profits with ROIC and revenue growth is a step in the right direction to ensure that the profits a business earns are actually creating value, not simply over-consuming capital that another company could better deploy. However, profits, ROIC, and revenue growth are backward looking.

ROIC 62
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I'm Afraid Bankers Really Do Earn Their Bonuses

Harvard Business Review

In what is now a famous interview with the UK's Sunday Times in 2009, Goldman Sachs chief executive officer, Lloyd Blankfein suggested he was simply a banker, " doing God's work ," even if that meant, at the same time, recognizing, "people are pissed off, mad, and bent out of shape," over bankers' actions. to $1.4m).

ROIC 8
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What If Companies Managed People as Carefully as They Manage Money?

Harvard Business Review

Today’s executives spend a lot of time managing the balance sheet, despite the fact that it doesn’t represent their company’s scarcest resource. A veritable alphabet soup (ROA, RONA, ROIC, ROCE, IRR, MVA, APV, and the like) exists to measure our financial capital. Vincent Tsui for HBR. Measure it.